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Ark Invest has increased its investment in Coinbase after purchasing 78k shares of the company.
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Coinbase’s stock price is down by 83% since the start of the year.
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Ark Invest now holds 5.7 million Coinbase shares.
Cathie Wood’s Ark Invest purchases more Coinbase shares
Cathie Wood’s Ark Investment Management revealed a few hours ago that it had purchased 78,982 shares in the cryptocurrency exchange Coinbase. This latest cryptocurrency news comes despite Coinbase’s shares (COIN) losing over 80% of their value since the start of the year.
At press time, COIN is trading at $40.32, which means Ark Invest could have spent around $3,184,554.24 to acquire the over 78k Coinbase shares. COIN has been underperforming since the start of the year and has lost 83% of its value during that period.
However, COIN is starting the week in a positive fashion, as it is up by 0.8% since the US stock market opened a few hours ago. Following this purchase, Ark Invest now holds 5.7 million worth of Coinbase shares.
The move could indicate that Ark Invest is bullish about Coinbase and the broader cryptocurrency market despite a bear market that has caused the prices of most cryptocurrencies to dip by more than 75% over the past 12 months.
Coinbase expects 2022’s revenue to decline by 50% or more
While Ark Invest might be bullish about the long-term prospect of Coinbase, the short-term performance remains poor.
Last week, Coinbase CEO Brian Armstrong, revealed that he expects the company’s 2022 revenue to decline by 50% or more from what was recorded last year. At the time, he said;
“Last year in 2021, we did about $7 billion of revenue and about $4 billion of positive EBITDA, and this year with everything coming down, it’s looking, you know, about roughly half that or less.”
He explained that the ongoing bear market and the recent FTX collapse affected the company’s financial performance.